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Monday, October 10, 2016

Your Latest Real Estate Market Update

The wonderful world of real estate tends to run in cycles. Our market is shifting right now, so there are a few market trends that you need to be aware of.

As we all know, the wonderful world of real estate runs in cycles. There are times when the market is up, times when the market is down, and in-between times when the market seems flat. For those of us who have been through multiple upswings and downturns over the years, the worst downturn we’ve seen lasted from 2006 to mid-2011.

If you look at most cycles in real estate, we typically have four or five years of a really good market and then 12 to 36 months of an adjustment or downswing before starting that upward cycle again.

Since the recovery from the Great Recession began in mid-2011, it would only be natural for us to hit the next real estate cycle soon because it has been about five years since our last major downturn.

So, what are the signs of a market adjustment? Typically we will see increased inventory, more days on market, and frequent price reductions. This is exactly what we have seen over the last 10 months, and the market continues to adjust today.

What is causing the adjustment? As mentioned, we have had the five-year recovery period already, and it is time for the market to adjust. We are also experiencing enormous uncertainty in the stock market in the wake of Brexit; this causes people to slow down when it comes to purchasing a home, as some may not have enough money for a down payment. The uncertainty also slows down the market in the upper price points.

At the same time, we are in an election year. Election years cause economic concern and slow down the real estate market. Unfortunately, there have also been both national and international acts of terrorism, which further breed fear, uncertainty, and caution in our market.

Overall, the real estate market is doing great.

That said, it’s not all doom and gloom. The market isn’t going down anytime soon. My team and I cover 25 different cities in three major counties, and we are on track to help more than 60 families buy or sell a home anywhere from $400,000 to $2.5 million. In short, I have a direct pulse on what’s taking place in our market.

The good news is that homes are still selling and buyers are still taking advantage of the historically low interest rates, which means demand remains strong.

We are starting to see the market slow down in the higher price points of any market. In some cases, the top end of each market is starting to show signs of a buyer’s market. However, in the bottom three-quarters of the market, we are still experiencing a seller’s market. It’s not that insane seller’s market where there were 10 or 15 offers per property, though. Instead, the remaining three-quarters of the market is fairly healthy.

Overall, the real estate market is doing great. I would just say that you need to expect a little more volatility throughout the year. If you want more details about the market in your city or if you have any other questions, give me a call or send me an email. I would be happy to help you!

Tuesday, September 27, 2016

What Home Sellers Need to Know in Today’s Market

Before we got the listing, it had been on the market for a year. The story of this listing is very relevant to what is going on in our current market.

I am standing in front of one of our newest sales; in fact, we just put the ‘Sold’ sign up today. I wanted to share the story of this listing with you because I think it is very relevant to what is going on in our current market for home sellers.

These sellers had put their home on the market with two different real estate agents. The home was on the market for an entire year between these two agents and neither one got results. These sellers went through the sales process twice, cleaned their home for showings, and no one came through the property. Instead, the agents kept telling them to just reduce the price.

I called these sellers and told them about our aggressive marketing strategy and the results that we’ve been getting. The home sellers took a leap of faith and gave me the opportunity to market this property.

It seems like everyone has a real estate license these days.

I put the home up for sale, communicated with the homeowners throughout the process, and gave them all the information they needed in order to make the best decisions for their situation. They were looking for a certain price and we were able to sell their home for an excellent price in less than 45 days.

I cannot tell you how relieved these home sellers were when they got the results that they wanted.

I wanted to tell you this story today because right now, we are in an environment where it seems like everyone has a real estate license. When you go to put your home on the market, you might think you are hiring a professional because they dress professionally and know how to talk the talk; in the end, though, you might not get the results or the communication that you want.

If you or someone you know is having a similar experience while trying to sell their home, give me a call. I would love to give you the information you need to sell your property. If you have any other questions about real estate, let me know. I would be happy to help you!

Monday, August 1, 2016

Why Paying Less Commission Will Cost You More Money

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Why is paying less commission going to cost you more money?

A good, strong, professional Realtor usually charges about 6% commission to list, market, and sell a property. Why are there Realtors out there who would charge less than half of that?

Let’s think about that for a moment. If a Realtor is going to reduce their fee to sell your home, what are they going to do professionally to market your home outside of the MLS? Because I specialize in listing and selling homes that other Realtors couldn’t sell, I can say from experience that most discount Realtors have extremely low marketing capabilities. Under their guidance, homes take longer to sell and receive lower offers due to their lack of negotiating experience.  

If you pay less, you’re going to get less.
At first, it seems like you would be saving 1% or 2% on commission, but in reality, you’re losing 4% to 7% on the sales process. Another thing you should be concerned with regarding a Realtor who reduces their fee (i.e. paycheck) is how strong their negotiating skills are in the first place. If they can’t even defend their own paycheck, how are they going to defend the equity in your home?

You want a Realtor who’s going to market your home aggressively, negotiate the highest dollar, and
has a great team behind them to give you world-class service. For example, we’re getting almost 5% more for our homes than the average Realtor in the marketplace. Our clients are walking away with almost $21,000 more than the average Realtor can get.

In real estate, you get what you pay for. If you pay less, you’re going to get less. Any Realtor that’s any good in this town, or any town, is going to charge at least 6%. Any agent that offers less is either part-time or new to the business. I can’t guarantee it, but 99% of the time I’m right.

If you’re thinking about selling or know somebody who is, call me or send me an email. I look forward to hearing from you soon.